Infinity Exchange, a new platform providing institutional-grade capital efficiency in decentralized finance (DeFi), announced a $4.2 million seed to boost institutional adoption for DeFi.
Infinity Exchange is led by Kevin Lepso, a former Morgan Stanley executive who left the world of traditional finance with the possibilities that DeFi offers to investors.
However, the founders say that institutional investment is vital to building the next development of DeFi 2.0 for a strong economic foundation.
According to Lepso, with fixed-to-floating rates, along with access to a full-rate product suite, there will be more secure opportunities for institutional investors and parity in rates for individuals.
“Beauty Now individual investors will be at ease knowing that they have access to the same markets that institutional investors do, and it doesn’t matter whether they are lending or borrowing $100 or $10 million.”
Lepso highlights a major downside of the current DeFi 1.0 space, which is the disconnect between floating rate markets and fixed rate markets. In such cases, as in the current DeFi setup, capital cannot flow smoothly, causing the markets to not work in tandem with each other.
Funds raised from the latest round will go toward the development of Infinity’s product offerings, which include fixed and floating rate markets as well as futures and spot trading markets, among other things.
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In providing elements of TradeFi, such as a complete financial market protocol with fixed and floating interest rates, it encourages large institutions to step into the unfamiliar. Lepso told Cointelegraph that it also helps to compensate for the existing shortcomings of the existing DeFi protocol, as noted above.
“By integrating product features, and introducing more efficient collateral management, we enable more players to access markets and trade in many new ways that were not possible before.”
Lepso estimates that such tools are a major part of the foundation for potential market growth of up to “1000x today” for large-scale investors.
This development comes as institutional investors keep an eye on the space. Some surveys show that around 8% of institutional investors believe that crypto will surpass traditional investing in the next ten years.
